What Happen to Soilbuild REIT 72 Loyang Way

72 Loyang Way is an integrated facility comprising offices, single-storey production facilities, blasting chamber, dormitory and a jetty with 142 metres of sea frontage. It is one of the asset under Soilbuild REIT’s portfolio.

Last year, due to the headwinds in the marine and offshore, oil and gas industry, Technics Offshore Engineering Pte Ltd defaulted on its rent at 72 Loyang Way. Being a shareholder of Soilbuild REIT, I am worried about the prospects of 72 Loyang Way. Have you also been waiting for some updates on 72 Loyang Way?

In the current 4th quarter 2016 presentation slides, investors have received some updates from Soilbuild REIT. Although I consider it as not exactly fantastic news but at least it is some positive news to me.

The news that was announced was that JTC has temporarily lifted the subletting requirements on 30% of the subject site’s gross floor area (“GFA”) till end 2020. This means Soilbuild REIT has an option to sublet 30% of the GFA to non-anchor tenants.

Currently, Soilbuild has leased out approx. 9.9% (20,145 sqft) of the GFA to 2 tenants.